PGIM launches Total Return Bond ETF, ESG High Yield Fund

By Marisa Wong

Los Angeles, Dec. 8 – PGIM Investments launched two new bond funds, the PGIM Total Return Bond ETF and PGIM ESG High Yield Fund, expanding access to its flagship core-plus bond strategy and providing a high-yield option for fixed-income investors committed to environmental, social and governance investing principles, according to a press release.

The PGIM Total Return Bond ETF aims to outperform the Bloomberg U.S. Aggregate index with opportunistic investments in non-benchmark sectors and derivatives, while the PGIM ESG High Yield Fund seeks to outperform the Bloomberg U.S. High Yield 1% Issuer Capped index over the long term while investing in bond issuers with stronger ESG characteristics and practices.

Both funds are managed by PGIM Fixed Income.

The total return ETF is an actively managed fixed-income ETF seeking total return by investing in a diversified portfolio of bonds across multiple fixed-income sectors. It mirrors the strategy used by PGIM Fixed Income’s Total Return Bond mutual fund.

The ETF is managed by the same portfolio managers as the mutual fund: Robert Tipp, Michael Collins, Richard Piccirillo, Gregory Peters and Lindsay Rosner.

The ESG high-yield fund invests in a diversified portfolio of high-yield fixed-income securities, emphasizing issuers with stronger ESG characteristics and practices than traditional high-yield bond portfolios.

The ESG portfolio is managed by Robert Cignarella, Robert Spano, Ryan Kelly, Brian Clapp, Daniel Thorogood and Brian Barnhurst, the same managers who oversee the PGIM High Yield Fund.

PGIM said the ESG high-yield fund is the second ESG mutual fund launched in the United States by PGIM this year, following the PGIM ESG Total Return Bond Fund.

The asset management firm is based in Newark, N.J.

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